HOUSE BILL REPORT

SSB 5152

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Background:

The Department of Licensing (DOL) issues special vehicle license plates that may be used in lieu of standard plates. A governmental or nonprofit sponsoring organization seeking to sponsor a special plate either submits an application to the DOL or requests legislation to create the special plate. The sponsoring organization seeking to sponsor the special plate is required to reimburse the DOL for the costs of establishing the new special plate. There is a moratorium on the issuance of new special plates by the DOL through June 30, 2013.

For special license plates that are enacted by the Legislature, a sponsoring organization must, within 30 days of enactment, submit prepayment of all start-up costs to the DOL. If the sponsoring organization is not able to meet the prepayment requirement, revenues generated from the sale of the special license plate are first used to pay off any costs associated with establishing the new plate. The sponsoring organization must also provide a proposed license plate design to the DOL. Additionally, the sponsoring organization must submit an annual financial report to the DOL detailing actual revenues generated from the sale of the special license plate. The reports are reviewed, approved, and presented to the Joint Transportation Committee.

The DOL collects special license plate fees and, for administrative expenses, deducts an amount not to exceed $12 for new plate issuance and $2 for renewal. After these expenses are paid, the State Treasurer deposits proceeds into the Motor Vehicle Account until the DOL determines the start-up costs for a special license plate are paid.

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Summary of Amended Bill:

The bill creates Seattle Sounders Football Club (FC) and Seattle Seahawks special license plates which would display Seattle Sounders FC and Seattle Seahawks logos, respectively. In addition to all fees and taxes required to be paid upon application for a vehicle registration, a fee of $40 would be charged for a Seattle Sounders FC or Seattle Seahawks special license plate and a $30 fee is charged for renewal of a special license plate.

After the costs associated with establishing the special license plates are recovered, proceeds from the sale of the Seattle Sounders FC and Seattle Seahawks special license plates are distributed as follows:

Seattle Sounders FC Special Plate. Half of the proceeds are distributed to the Washington State Mentors, to increase the number of mentors in the state by offering mentoring grants throughout Washington that foster positive youth development and academic success. Up to 20 percent of this amount may be used for program administration costs. The second half of the proceeds are deposited into the Youth Athletic Facility Account for purposes of grants or loans to cities, counties, and qualified nonprofit organizations for community outdoor athletic facilities.
Seattle Seahawks Special Plate. Half of the proceeds are to be used by the nonprofit organization, InvestED, to encourage secondary students who have economic needs to stay in school, return to school, or get involved within their learning community. The second half of the proceeds are deposited into the Youth Athletic Facility Account for purposes of grants or loans to cities, counties, and qualified nonprofit organizations for community outdoor athletic facilities.

The bill exempts the Seattle Sounders FC and Seattle Seahawks special license plates from the moratorium on new special license plates.

Amended Bill Compared to Substitute Bill:

The distribution of the Seattle Sounders FC special license plate revenue is changed from Washington State Mentors and Association of Washington Generals to Washington State Mentors and the Youth Athletic Facility Account. The distribution of the Seattle Seahawks special license plate revenue is changed from InvestED to InvestED and the Youth Athletic Facility Account. Language allowing other professional sports teams in Washington to sponsor a special license plate, provided the proceeds are used in conjunction with a nonprofit organization, is removed.

Staff Summary of Public Testimony:

(In support) The bill is very beneficial to kids in Washington. InvestED is an organization that helps kids get things for school they otherwise could not afford, and the Washington State Mentors, an umbrella organization of around 200 mentoring organizations in the State of Washington, will use the money for matching grants to increase the number of mentors for kids. The plates not only help nonprofits and children, but also promote two great sports teams in Washington. For many years, fans have asked, "Why can I not get a Seahawks or Sounders license plate?" The plates help with the never-ending quest for our fans to be more engaged and get our brand out there. More importantly it helps fund and generate revenue for nonprofits. There are hundreds of thousands of kids and adult soccer players in the area; Washington is one of the most popular areas for soccer in the country. There is a lot of revenue potential for the license plates, a lot of people will want to buy one. Please support a bill that would help a lot of kids.

(Opposed) None.